General Instructions-Bank Franchise Tax Return

ADVERTISEMENT

GENERAL INSTRUCTIONS — BANK FRANCHISE TAX RETURN
RSMo 148.010 – 148.112
This information is for guidance only and does not state the complete law.
1. FILE RETURN ON OR BEFORE APRIL 17 (tax becomes delinquent after this
2. WHO MUST FILE — Every bank and every trust company organized under
date and is subject to interest). The annual interest rate can be obtained from
any general or special law of this state and every national banking association
the Department’s web site at: Make check
located in this state and any branch or office physically located in this state of
or money order payable to Missouri Department of Revenue. Mail to: Missouri
any commercial bank or trust company.
Department of Revenue, P.O. Box 898, Jefferson City, Missouri 65105‑0898.
3. If any bank operates more than one office or branch in Missouri, the bank shall
An extension of time to file this return may be obtained from the Department
file one return giving the address of each such office or branch and setting
of Revenue upon written request. Such request should indicate the extension
forth the total dollar amounts of accounts or deposits of each such office. To
period requested, the reason and must be accompanied by a tentative return
complete the Bank Franchise Tax Return in this regard, complete the Form
and payment for the estimated tax due. An extension of time to file the return
2331, Schedule B. For proper completion of Schedule B, refer to Regulation
does not extend the time for payment of the tax. An extension of time may
12 CSR 10‑10.020. If the banking institution has only one office, indicate on
not exceed 180 days from the due date (April 17) pursuant to Regulation 12
Schedule B. Schedule B must be completed and submitted with the Bank
CSR 10‑10.110. Note: Any payment submitted after the due date of April 17 is
Franchise Tax Return.
subject to interest at the rate determined by Section 32.065, RSMo.
4. All returns are to be filed based upon a calendar year business activity basis.
If any return is not filed by the due date, a penalty of 5% per month or
5.
Enter your three digit county code of the principal place of your institution
fraction thereof, not to exceed 25% is calculated on the amount due.
from the list provided at the end of these instructions.
SPECIFIC INSTRUCTIONS FOR COMPLETION OF THIS RETURN
Line 1.
Enter the amount of taxable income or loss from Federal Form 1120,
vendors, or the State of Missouri on purchases of tangible personal
Line 28, before any net operating loss deduction or special deduction is
property and services enumerated in Chapter 144, RSMo, may be
applied, or Federal Form 1120S, Line 21.
claimed as a credit. Capitalized sales and use taxes paid by banks as
purchasers are creditable. Documentation to support the capitalized
Taxpayers that are members of an affiliated group filing a consolidated
sales and use tax credit must be available upon request.
federal income tax return shall compute federal taxable income as if
a separate federal tax return had been filed by each member of the
Pursuant to Regulation 12 CSR 10‑10.150, certain criteria must be met
in order for a tax credit to be allowable. The regulation reads as follows:
affiliated group. A pro forma federal return or appropriate schedules
should then be attached together with a copy of pages 1 through 4 of
12 CSR 10‑10.150 Tax Credits on Bank Tax Return —
the consolidated federal income tax return.
(1) The following criteria shall be used to establish whether or not
Line 2.
Enter all income received on state and/or political subdivision
a tax credit may be claimed against the Bank Franchise Tax, imposed
by Sections 148.010 to 148.110, RSMo, computed pursuant to Section
obligations excluded from the federal return. This income is taxable on
148.030.3,RSMo:
this return. Explain if different from tax‑exempt interest shown on the
federal return.
(A) The payment must have been made to the State of Missouri or a
political subdivision located in the State of Missouri.
Line 3.
Enter all income received on federal securities excluded from the
federal return (e.g., non‑taxable portion Federal Reserve Bank
(B) Payment must have resulted from a tax liability imposed by a
dividends). This income is taxable on this return.
government agency, as defined in subsection (1)(A), and cannot be
a regulatory fee collected solely for the purpose of paying the cost of
Line 4.
Enter the charitable contribution claimed on the federal return.
administering the taxing jurisdiction’s laws.
Line 5.
Enter the bad debt claimed on the federal return or any additions to
(C) The following should be used as a general guideline to de ter‑
a bad debt reserve claimed as a de duc tion on federal return. (The
mine if an exaction, required by subsection (1)(A), is an allowable tax
reserve method is not a permissible method on this return.) In the
credit or a non‑creditable fee:
appropriate box, indicate the bad debt method used on the federal
return.
1. If the proceeds, paid as defined in subsection (1)(A), are collected
for deposit into the general revenue account of the taxing jurisdiction,
Line 6.
Enter the excess, if any, of recoveries of bad debts previously charged
to raise revenue for said entity, then it is a tax and is an allowable tax
off over current year charge offs. Attach schedule of bad debt
credit.
computation.
2. If the proceeds, paid as defined in subsection (1)(A), are collected
Line 7.
Enter any Missouri Bank Franchise Tax deducted on the federal return.
primarily to cover the costs of the regulation of an activity, and which
This is not an allowable deduction on this return.
are then deposited with the regulatory agency, then it is a non‑cre dit‑
NOTE: Cash basis banks should add the Missouri Bank Franchise Tax
able fee.
paid in the preceding calendar year.
(2) At all times the burden of establishing whether an exaction is an
Accrual basis banks should add the Missouri Bank Franchise Tax
allowable tax credit or a non‑creditable fee shall be on the taxpayer.
accrued during the previous calendar year.
An accrual basis taxpayer that is a member of an affiliated group filing
Line 8.
Enter here and on Line 19B taxes to be claimed as credits on this return.
a consolidated Missouri income tax return shall allocate a portion of
All taxes paid to the State of Missouri or any political subdivision thereof
the consolidated Missouri income tax liability for the year by multiplying
are eligible except taxes on real estate, unemployment taxes, bank tax,
such liability by a fraction, the numerator of which is the separate
and taxes on tangible personal property owned by the taxpayer and
Missouri taxable income of such member, and the denominator of
held for lease or rental to others. Show detail on Schedule A. All state
which is the sum of the separate Missouri taxable incomes of all
and local sales and use taxes paid by banks as purchasers to sellers,
members having Missouri taxable income for the applicable year.
INT-2-Instructions (10-2011)

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 3